Oil Steadies as Investors Eye Ukraine War, Tariffs on India

Summary

Witkoff to meet Ukrainians in New York this week
Trump’s doubling of tariffs hits India
API shows US crude, products inventories fall, sources say
Russia lifts August crude exports after refinery attacks

(Reuters) – Oil prices steadied on Wednesday, after falling in the previous session, as investors watched for developments in the Ukraine war and weighed an industry report showing a drop in U.S. inventories and new U.S. tariffs on India.

U.S. special envoy Steve Witkoff said on Tuesday he will meet Ukrainian representatives in New York this week, adding that Washington is also in talks with Russia as it seeks to end the war.

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Oil found some support from the American Petroleum Institute’s weekly supply report, which market sources said showed U.S. crude, gasoline and distillate inventories fell last week. Official inventory data is out at 1430 GMT.

Brent crude futures were down 18 cents, or 0.3%, at $67.04 a barrel as of 1045 GMT, while West Texas Intermediate (WTI) crude futures were down 14 cents, or 0.2%, at $63.11. Both contracts fell more than 2% on Tuesday.

Also in focus is U.S. President Donald Trump’s doubling of tariffs on imports from India to as much as 50% which took effect on Wednesday, over India’s Russian oil buying.

While there is no sign of supply disruption so far, uncertainty over whether the U.S. will target the oil flows is deterring some traders from taking new positions, said Giovanni Staunovo, analyst at UBS.

“That uncertainty in my view keeps some investors on the sidelines until more clarity emerges on the next steps of U.S. President Trump,” he said. “The API report was supportive.” In other recent developments, Russian refineries have been hit by Ukrainian drone attacks, forcing them to export the crude they cannot process.

Russia has revised up its crude oil export plan from western ports by 200,000 barrels per day in August from the initial schedule after attacks last week, three people familiar with the matter said on Tuesday.